Vehicle data company Cazana.com has opened up a part of its Series-A funding round to its users and fans with a £1m crowd-fundraise on Crowdcube. Cazana, and subsidiary Car and Classic, are popular free car listing sites with more than 2 million visitors monthly.
The raise is being led by Passion Capital, backers of Monzo and Nested, along with industry heavyweights David Hammond and ex-RAC managing director Robert Diamond. Existing Cazana customers and motoring enthusiasts are also expected to take a stake.
The funding will support the global expansion of the business, as well as accelerating monetisation of Cazana’s B2B sales. It will also be used to develop Cazana’s growing suite of services, including the newly acquired Car & Classic website.
The home-grown startup, which was launched in 2013 and uses AI and big data to provide customers with information on modern and classic cars, said it is predicted to hit £22m in revenue by 2022.
Cazana also offers free online car checking and valuation services for customers, allowing them to access real-time values of vehicles along with previously unseen history information. Its database, which covers every car on the road, also provides insights to businesses to inform their lending and pricing strategy.
The Financial Ombudsman has also recommended the use of Cazana for insurance total loss valuations with many of the UK’s motor insurers now using Cazana’s whole market valuations.
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Tom Woods, CEO of Cazana, said: “This is a time of revolution in the car industry and we’re incredibly excited about this funding round and what it means for Cazana and our customers.
“Our acquisition of Car & Classic last year massively increased our reach and the services we provide to consumers and businesses. The classic car market is a very lucrative sector of the automotive industry, with £25.4bn worth of classic cars transacted annually worldwide.
“With this raise, we will accelerate our plans to secure a stronger foothold in US markets and well as investing in our consumer facing platforms. It’s fantastic to have such an esteemed group of investors participating in this round and we look forward to our customers and motoring sector experts joining their ranks as part of this crowdfunding.”